impact of finance on business decisions

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Unit 11-Impact of Finance on Business Decisions

Introduction

My name is Yathursan Devabalan. I am a sixth-form student at Woolwich Polytechnic School. I am currently studying Maths, Business and Economics. In business I am currently in the process of completing the coursework on ‘Impact of finance on business decisions’. This coursework requires me to investigate how a business uses financial information to make decisions. So in this coursework I will look at the financial constraints faced by the business, the impacts the constraints have, I will analyse how the business monitor and control their operations of face such constraints and how they overcome them.

I decided to investigate ‘LH Turtle Limited’ because I can find out financial information about them easily. ‘LH Turtle Limited’ is a family owned business that runs a hardware store situated in the centre of Croydon. Another reason why I chose ‘LH Turtle Limited’ is that I know several people who work there, so I can easily access financial information for it. ‘LH Turtle Limited’ is in a highly competitive market with likes of Focus, Wickes, BBQ and other DIY stores. ‘LH Turtle Limited’ find it very challenging competing in the market as there is large DIY stores who sell at low prices. Also as ‘LH Turtle Limited’ is located in centre of Croydon it restricts number of sales ‘LH Turtle Limited’ makes as there is limited parking space for the customers. Even though they offer home delivery service it still does not increase sales compared to amount of potential sales lost because of restricted parking spaces.

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Task 1 → identifying the financial needs and constraints

LH Turtle Limited’s long term goal is to maximise profit, however its daily goal is to survive. So the key to ‘LH Turtle Limited’ surviving in the market is the way the business is financed. ‘LH Turtle Limited’ needs to be developed if they are going to compete with the likes of Wickes, BBQ and Focus.

 They can develop by for example by: reallocating to a larger site away from the town centre so that there is more customer parking space. Another way of developing is by more ...

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